Real estate is a favorite choice among investors, especially in India, for more than just one reason. It is one sector that has witnessed a steady growth over the last couple of decades, becoming one of the pillars holding up India’s economy. Real estate constitutes about 6-7 per cent of the Indian economy.
If things go well, that share might increase to account a stunning 13 per cent by 2025. Real estate boasts of generating the second-highest rate of employment opportunities in the country. It is also associated with about 220 other allied sectors.
All was well and thriving until 2020, when the world and its markets came to standstill. The pandemic transformed everything and the world, as we have known it, ceased to exist. The ripples of this transformation touched the shores of the real estate sector too.
Experts, however, believe that real estate has crossed miles on the road to recovery. It has bounced back on its feet rather quickly. With things looking up for 2021, India is all set to embrace growth, innovation and investment in the real estate sector.
The types of real estate investment opportunities in India
Are you contemplating on investing in real estate? Needless to say, it is quite the smart choice. Let’s first get to the basics of it. Here are five types of real estate investment opportunities:
The residential type of investment opportunity involves properties like houses and apartments. You can generate income by renting the property out to someone and charging rent.
Commercial investment opportunities involve properties like offices, shopping malls, skyscrapers and more. You can rent out these spaces for companies and businesses, which, in turn, would pay you the rent for it.
By offering spaces like industrial warehouses, storage units and more, you can generate income from the industrial investment opportunities.
Gold, stocks or real estate; what is a smarter investment option?
While the reasons to invest in real estate, as we have already mentioned, are many, there are important factors to consider, before arriving at a conclusion.
Compared to stocks, the real estate sector can indeed offer lower rates of risk and enhanced returns, with improved diversification. However, real estate investment calls for a substantial amount of money for the initial investment.
Gold investments, too, have their own perks. However, if you are looking at something long-term, real estate investment is ideal. It can fetch you regular income. Real estate property is comparatively a stabler investment option. For example, the biggest commercial tower Hyderabad, SAS I Tower is going to revolutionize office space in the IT Sector. They are offering A+ Grade office space in the multiples of 1000 Sq. Ft for sale and promising to take care of the leasing for the next 25 years. You get rent to your account with minimal headache and appreciation of the property will skyrocket once CBRE, the leasing partner signs an agreement with an MNC.
Before you take the final call
Real estate undoubtedly is a safe and promising choice to invest. However, do your research well to understand the intricacies and nuances of this dynamic sector to make an informed decision; one that will suit you best and benefit you abundantly. Good luck!